Bitcoin miner Hut 8 takes stoush with Ontario power supplier to court

Canada-based Bitcoin (BTC) miner Hut 8 Mining Corporation has ramped up its ongoing combat with its powerfulness supplier for 1 of its mining sites, filing a suit successful a Canadian court.

Hut 8 said connected Jan. 26 it filed a Statement of Claim successful the Superior Court of Justice of Ontario against Validus Power, an vigor supplier for a Hut 8 mining facility successful North Bay, Ontario.

The firms person been successful an ongoing quality since aboriginal November 2022 owed to what Hut 8 alleges is simply a nonaccomplishment by Validus to “meet its contractual obligations” for the powerfulness acquisition statement (PPA)

In its caller lawsuit, Hut 8 is seeking “monetary damages incurred arsenic a effect of the dispute” and enforcement of definite provisions arsenic per the statement signed by the 2 companies.

Hut 8 and Validus started moving unneurotic successful precocious 2021 with Validus initially providing 35 megawatts (MW) of power to North Bay, but was slated to supply astir 100 MW by the extremity of 2021.

A June 2022 photograph from the North Bay installation showing aggregate ASIC crypto miners. Source: Hut 8

On Nov. 9, 2022, Hut 8 issued a announcement of default to Validus alleging it failed to achieve milestones by the dates outlined successful the PPA and claimed the steadfast demanded Hut 8 wage for vigor that was astatine a higher terms than that nether the presumption of the agreement.

An update from Hut 8 aboriginal that period revealed Validus suspended the transportation of vigor to its North Bay site. Validus fired backmost with its ain default announcement alleging Hut 8 failed to wage for its power charges — a assertion Hut 8 denies.

We’re successful North Bay contiguous touring ⁦@Hut8Mining⁩’s 3rd mining site, with ⁦@PowerValidus⁩ #btc #canada pic.twitter.com/3BWNQm0Sft

— Hut 8 (@Hut8Mining) October 25, 2021

To this date, operations astatine the tract stay suspended. Hut 8 said it’s exploring alternatives to mitigate the interaction of the quality including done “organic and inorganic maturation opportunities.”

Related: Bitcoin miners’ worst days whitethorn person passed, but a fewer cardinal hurdles remain

Before it was taken offline, the North Bay tract had 8,800 crypto mining rigs and a hash rate capableness of 0.84 exahashes per 2nd (EH/s), accounting for implicit one-fourth of its full accumulation capacity, according to a December 2022 capitalist deck.

Cointelegraph contacted Validus and Hut 8 for remark but did not person an contiguous effect from either firm.